The Dutch government declared on Wednesday that it has halted its intervention in Chinese-owned chipmaker Nexperia after holding constructive discussions with Chinese officials.
In a letter to parliament, Dutch Economy Minister Vincent Karremans stated that it now seems Beijing is allowing companies from Europe and elsewhere to export Nexperia chips, calling it ‘an important step.’
The move appears to resolve the dispute between the Netherlands and China, which had raised concerns among global automakers over the chip shortage.
According to CNBC, the Dutch Economic Affairs ministry stated that the country views this as “the right moment to take a constructive step” by pausing the order under the Goods Availability Act.
The ministry also noted it would continue discussions with Chinese officials in the coming weeks.
China’s Commerce Ministry described the suspension as a ‘first step in the right direction’ and added that further action is required to tackle the underlying cause of ‘turmoil and chaos’ in the global semiconductor supply chain.
The Nexperia dispute began in September, when the Dutch government invoked a Cold War‑era law to effectively assume control of the company, following the U.S. warnings over security risks.
The government justified the move by citing worries that the company’s technology, which focuses on large-scale production of chips for automotive, consumer electronics, and other sectors, ‘would become unavailable in an emergency.’
In response, China halted exports of Nexperia’s finished products.
On Wednesday, EU trade chief Maros Sefcovic welcomed the Dutch government’s decision to pause its intervention at Nexperia, stating that it will contribute to stabilizing strategic supply chains.
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